Royal Bank of Scotland axes 3,500 jobs

State-rescued Royal Bank of Scotland said it would cut about 3,500 more jobs over the next three years as the group shrinks its investment banking activities as part of a major overhaul. The lender, which is 82-percent state owned, also outlined plans to reorganise its wholesale banking operations into two divisions -- Markets and International Banking -- and downsize or cease other selected activities. The company will exit businesses including cash equities, corporate broking, equity capital markets, and mergers and acquisitions. It will also implement "significant" reductions in its balance sheet, funding requirements and costs. "RBS has today announced changes to its wholesale banking operations to ensure they continue to deliver against the group's strategy," said a statement, released on Thursday. It added: "At this stage we envisage a further net employment reduction over three years of circa 3,500, split between our UK and non-UK locations, in addition to the approximately 2,000 reduction in staff in (investment division) Global Banking & Markets in the second half of 2011." RBS has slashed around 34,000 jobs since October 2008 when it was rescued by the British taxpayer. The group was ravaged by the global financial crisis and the takeover of Dutch giant ABN Amro at the top of the market in 2007.